In May 2008 James Montier, fund manager at GMO, couldn’t find opportunities to invest, he wrote an article about short selling: Joining The Dark Side: Pirates, Spies and Short Sellers. His research found that the ideal short candidates are the companies that have these three characteristics:

1. Stocks that are sold at high P/S ratio

2. Companies that have low Piotroski F-score

3. Companies that have double-digit asset growth.

He found that companies with any of these characteristics underperformed the market.

Considering this, we have created a James Montier Short Screen in our All-In-One Screener with these filters:

1. P/S ratio is higher than 90% of the companies in the industry

2. Piotroski F-score is 3 or less

3. Five-year average asset growth is higher than 10%.

With these filters we get the list of the stocks that meet the criteria:

Symbol

Company

Share Price ($)

Market Cap (mil)

F Score

P/S

BTX

BioTime, Inc.

3.996

197.3

1

45.4

CVM

CEL-SCI Corporation

0.34

92.8

1

97.1

GERN

Geron Corporation

1.7

223.2

1

91.6

SNT

Senesco Technologies, Inc.

0.29

28.5

2

204

UQM

UQM Technologies, Inc.

0.78

29.6

2

2.9

DXR

Daxor Corporation

8.99

37.3

2

25.8

REFR

Research Frontiers, Inc.

2.93

55.9

2

66

ACHN

Achillion Pharmaceuticals, Inc.

6.51

474.7

2

1922

BPAX

Biosante Pharmaceuticals Inc

1.35

25.2

2

57.9

HUSA

Houston American Energy Corporation

0.8197

31.1

2

26.9

ECTE

Echo Therapeutics Inc

1.46

57.6

2

128.9

CGEN

Compugen Ltd. (USA)

3.56

123.3

3

110.6

HEB

Hemispherx BioPharma, Inc

0.3587

47.2

3

292.8

SYNM

Syntroleum Corp

0.64

64.4

3

15.3

DRQ

Dril-Quip, Inc.

70.98

2894.7

3

4.8

GYRO

Gyrodyne Company of America, Inc.

112.83

167.5

3

30.4

MOSY

MoSys Inc.

3.24

128.6

3

9.1

CRUS

Cirrus Logic, Inc.

38.07

2448.9

3

5.7

ADES

ADA-ES, Inc.

23.36

230.2

3

4.3

CNQR

Concur Technologies, Inc.

67.37

3519.5

3

10.1

RCKB

Rockville Financial Inc

11.85

340.7

3

3.8

ETAK

Elephant Talk Communications Inc.

1.31

156.2

3

4.8

Not surprisingly, the prices of many of these stocks are already at close to 52-week lows and almost all of them don’t pay dividends.

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